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AGDC Interim President’s ReportJoe DublerJanuary 9, 2020
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• Continue to represent State of Alaska in AKLNG:Work with BP/ExxonMobil going well
On time/approximately 50% under budget
• BP sale to Hilcorp Have begun meeting with Hilcorp to gauge interest in AKLNG
• FY 21 Budget proposal submitted by the Governor: $3,431,600 operating expenditures for AGDC; $97,400 operating expenditures for DEC; $521,700 operating expenditures for DNR; and $20 million in statutory designated program receipts for AGDC.
With the ability to receive funds from third parties, staff is comfortable that the requested appropriation will be sufficient to continue work at an appropriate level in FY21.
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AGDC Fourth Quarter Review
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• Met with Mat-Su Borough Manager John Moosey about their objections to AKLNG expressed in multiple filings with FERC
• Attended RDC conference:Darlene Gates (XOM), in her presentation to the conference,
discussed Exxon’s desire to monetize ANS gasQilak LNG presented their project concept
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AGDC Fourth Quarter Review (continued)
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Upcoming Activities
• Continue work on regulatory effort• Ongoing work with BP & ExxonMobil:Cost reduction workVenture structure work
• Continue soliciting partners for participation in FEEDSignificant work has been done over the past several years
and several of those relationships are expected to continue, most likely subject to confidentiality agreementsWith sufficient financial interest from third parties, AKLNG
will be in a position to begin and complete FEED within the next two to three years
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Financial SummaryALASKA GASLINE DEVELOPMENT CORPORATIONFiscal Year to Date Statement of Activitives(in thousands of dollars)as of November 30, 2019 Unaudited
YTD Costs YTD CostsLNG Project Expenditures 2,360 Core Staff 810
Asset Mgmt 1AGDC General & Admin Function 2,813 FERC Labor 18
Total 5,173 FERC Engr 1,029FERC EIS 439FERC Legal 2FERC RSA 14FERC BLM 48
2,360
General and Administrative by Department / Function
YTD Costs YTD CostsExecutive 700 Personnel 1,647Commercial 458 Travel 8External Affairs 173 Services 463Legal 83 RSA Services 6Finance 376 Services - Mgmt Consulting 629Administrative Services 609 Commodities 39Data Management 414 Depreciation 21
Total 2,813 Total 2,813
G&
A by Department
G&
A by Function
Total Expenditures
AKLNG
Expenditures
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Financial Summary AFE
ALASKA GASLINE DEVELOPMENT CORPORATIONFiscal Year to Date Statement of Activitivesas of November 30, 2019 Unaudited
AFE - Program Management6201 809,710 6203 - 6204 - 6205 850 6206 - 6207 - 6208 17,655 6209 13,783 6210 48,024 6211 1,029,384 6212 438,717 6213 1,563
Subtotal 2,359,684
Total AFE 2,359,684 Total Other 2,812,456Total 5,172,140
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Alaska LNG Project Technical and Regulatory Update
Frank Richards, Senior Vice President of Program ManagementJanuary 9, 2020
Milestone Date
FERC Public Comment Meetings September 9 - 12, 2019
BLM Public Subsistence Hearings September 17 & 19, 2019
AGDC Post-Public Meeting Update Meeting September 17, 2019
Draft EIS Comments Due to FERC by 5:00 PM EST October 3, 2019
FERC Milestones Achieved:
Milestone Date
Publication of Notice of Availability of Final EIS March 6, 2020
Issuance of Final FERC Order June 4, 2020
Future FERC Milestones:
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FERC Schedule & Milestones
FERC Work Program Status
• FERC Data Request #9 (Engineering) completed November 27, 2019 (92 requests)
• FERC Data Request #10 (Environmental) received November 22, 2019 included 56 requests with a 10 day response request
• FERC Data Request #11 (Engineering) received November 22, 2019 included 9 requests with a 20 day response request
• AGDC completed and submitted 65 responses for 100% completion of DR#10 and DR#11 by December 23, 2019
• FERC Staff issued a total of 1,895 data requests (both environmental and engineering) since July 2017
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FERC Work Program Dashboard
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Permit Agency Status Note
Letter of Recommendation USCG Issued Complete
Natural Gas Export DOE Issued Complete
Essential Fish Habitat Consultation NOAA Issued Complete
Strain-Based Design PHMSA Issued Complete
Crack Arrestor Spacing PHMSA Issued Complete
Mainline Block Valve Spacing PHMSA Issued Complete
Three Layer Polyethylene Coating PHMSA Issued Complete
Major Permit Status – Complete
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Other Permit Status
• ROW lease application through Denali National Park & Preserve (DNPP) advancing with National Park Service (NPS) NPS provided comments December 23, 2019 Meeting held January 7, 2020 to discuss comments Coordinating NPS wetland comments with Corps permitting effort
• ROW lease applications submitted to Department of Natural Resources (DNR) for Point Thomson Transmission Line (PTTL) on October 25, 2019 and GTP, Mainline Pipeline, & Liquefaction Facilities on October 31, 2019 60 day public notice period ending January 14, 2020 Providing responses to DNR questions on application, Cook Inlet crossing, and
storage tanks at the liquefaction facility • PHMSA issued public notice of their assessment and draft conditions
for the for Pipe-in-Pipe Special Permit in the Federal Register December 10, 2019 60 day public comment period ending February 10, 2020
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Permit Agency Status Note
Prevention of Significant Deterioration - Air Permit - GTP ADEC In Process Public comment closed; AGDC responding to
RFI by Jan 8; anticipated Q1 2020
Pipe-in-Pipe PHMSA In Process Public notice period; anticipated Q2 2020
Siting Review Letter of Determination PHMSA In Process Due 30 days prior to FERC FEIS; anticipated Q1
2020
Right-of-Way - State ADNR In Process Public notice period; anticipated Q3 2020
Section 106 Review FERC In Process
Misc. cooperating agencies; Programmatic Agreement anticipated Q1 2020; AGDC outreach meetings underway as agreed with SHPO, BLM, NPS
LNG Terminal/EIS FERC In Process DEIS complete; FEIS anticipated March 6, 2020
Right-of-Way – Federal BLM In Process Application submitted; anticipated June 2020
Major Permit Status – In Process
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Permit Agency Status Note
MMPA Incidental Take (Whale) NMFS In Process
Cook Inlet: Published in Federal Register; active ongoing negotiations regarding mitigation. Prudhoe Bay: Anticipated Q2 2020
MMPA Incidental Take USFWS In Process Sea Otter: Published in Federal Register; Polar Bear anticipated Q2 2020
Endangered Species Act Consultation NOAA In Process Package deemed complete; anticipated Q2 2020
Endangered Species Act USFWS In Process Consultation request received; anticipated Q2 2020
Bridge Permits for original route USCG In Process Public notice complete; anticipated Q3 2020
Right-of-Way - DNPP NPS In Process Application submitted; anticipated June 2020
Section 404 Wetlands USACE In Process Public comment period; anticipated Q3 2020
Section 401 Water Quality EPA & ADEC In Process Application in progress
Major Permit Status – In Process
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Permit Agency Status Note
Bald & Golden Eagle Protection Act USFWS AGDC
Action Application developed; submittal Q1 2020
Prevention of Significant Deterioration – Air Permit –LNG Facility
ADEC AGDC Action
Application developed; public comment period anticipated Q1 2020
Major Permit Status – AGDC Action
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Cost Reduction Work Program Status
• Contracted with Fluor Corporation to evaluate cost reduction opportunities and update the Class 4 Cost Estimate to Q4 $2019
• Scope of work includes 10 major tasks• Updated Class 4 Cost Estimate will be provided as input into
common economic model• Objective is to provide decision support package if the Project is
commercially and technically viable
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Capital Costs:• Task 1 A - Emerging Markets - Best Country Sourcing & Material Pricing
Update, & Q4 2019 Escalation
• Task 1 B - Emerging Markets - Use of High Value Engineering Center’s • Task 2 - Technology - Use of High Efficiency Fin Fans • Task 3 A - Market - Source line pipe as 80-foot spiral-welded steel pipe
produced in USA • Task 3 B - Market - Optimize Project Management Team• Task 3 C - Market - Optimize Contracting Strategy • Task 4 - Modularization - Optimize LNG Plant Modularization
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Cost Reduction Tasks
Capital Cost (cont.):• Task 5 A - Secondary - Reduce Nikiski Camp Size and related support costs
• Task 5 B - Secondary - Adjust Contingency to Q4 2015 Estimate Percentages • Task 6 - AGDC Items - Reduce Prepare for FEED and FEED (ERL) cost estimate
to account for AGDC major permitting earned value• Task 7 - Partnering - Eliminate on Site Power Generation at LNG Plant
Operating Costs• Task 8 - Opex Impact
Other• Task 9 - Additional Reduction Opportunities Identified by Fluor• Task 10 - Class 4 Cost Estimate Update
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Cost Reduction Tasks
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